Now The ESI Scheme Is Extended To Construction Site Workers Too Wef: 01.08.2015

Dear Members,

It is a pleasure to clarify the ambiguity among the members regarding the coverage of construction site workers, who have so far been considered part of the unorganized sector. I am attaching the notice issued to employers by ESIC, extending the scheme to all construction site workers, mandatorily effective from 01.08.2015.

Let us work together to give wide publicity to this initiative and improve the lives of these workers.

With regards,
Syam

Sir, I have one doubt. If ESI is mandatory for all construction employees, but in our company, the employees will not be stable every day. The contractor will bring a new person for the job. In some cases, if one construction worker is sick, then he will bring another person as a replacement. How could I deduct ESI for that employee for one day? Kindly help me, sir.

Dear Sankaracharya,

It's not as easy as we think to have organized employees. But where there is a will, there is a way... The problem is these kinds of employees, 99%, belong to uneducated and unwilling to accept any deductions from their wages, as many of them are either daily wage or weekly wage-based only.

In such cases, certain things need to be ensured from the contractor:

Being a Principal Employer or the Construction Agency, it's better to adopt the following practical methods for better and smooth applicability of the ESI Act to avoid complications and problems during inspections:

01. Better to make a written agreement with the Contractors that they have to provide a list of employees and wages when they demand weekly/daily wages.

02. Since every contractor himself or through a Supervisor/mason is supposed to monitor the workers' progress on a daily basis, it's better to advise them to maintain the same at the site, which should be a permanent record for the Construction Agency.

03. Every site will have its own mandatory security personnel; let the above things be monitored by them primarily on behalf of the Principal Employer.

04. Above all, it's better to advise the Contractors to get an individual ESI Code, thereby solving 50% of the problem. Even though the primary and final responsibility of their workers' compliance falls on the Construction Agency, to some extent, things will be tracked.

But one thing is very sure: it's NOT as EASY as we THINK.

With regards,

SYAM

Hi,

It's a great step towards employees' welfare. All poor people will benefit. However, contractors who supply such workers need to be monitored meticulously.